A leading figure in the lettings industry has voiced growing concerns about the unintended consequences of the upcoming Renters Rights Bill. The new legislation, which is expected to become law by early autumn, could result in a rise in County Court Judgments (CCJs) issued against tenants across England.
Oli Sherlock, managing director of insurance at PropTech firm Goodlord, believes the changes could inadvertently push more tenants into legal and financial trouble. At the centre of the issue is the Bill’s plan to abolish Section 21 evictions, which currently allows landlords to evict tenants without having to provide a reason.
Once Section 21 is removed, landlords will instead need to follow more formal procedures when seeking possession of their properties. This will involve clearly outlining the grounds for eviction, such as rent arrears or antisocial behaviour, and in many cases, applying for a court order.
While these changes aim to strengthen tenant rights and create a more transparent rental process, Sherlock warns that they may also create confusion or false confidence among renters. Some tenants may misinterpret the new rules as giving them more freedom to delay or withhold rent without immediate consequences.
He explains that when a landlord begins legal proceedings to evict a tenant under the new framework, the process could take considerably longer than the current Section 21 route. During this time, tenants might wrongly assume that rent payments are no longer essential.
This, he says, is a risky mindset that could lead to serious financial consequences. A growing number of tenants may stop paying rent while waiting for their case to progress through the court system, unaware that this could result in formal legal action against them.
Sherlock stresses that under the existing Section 21 process, eviction typically does not involve further legal steps once a tenant leaves the property. But under the new rules, landlords are far more likely to pursue unpaid rent through the courts.
This increased likelihood of formal legal proceedings means tenants could find themselves saddled with a CCJ—a legal ruling that confirms they owe money. If not paid in full within a set period, this judgment can remain on their credit file for up to six years.
Such a mark on a credit history can have a long-lasting impact. It may affect a tenant’s ability to rent a new home, be approved for a mortgage, or even sign up for everyday services like mobile phone contracts or broadband packages.
Sherlock warns that tenants could find themselves “sleepwalking” into CCJs without fully understanding the long-term damage they can cause. Even relatively small debts could lead to serious credit consequences if they are not addressed quickly.
Another risk is that with notice periods under the new Bill being longer, tenants who fall behind on rent may accrue higher arrears than before. This means the final debt could be much larger by the time a landlord is granted possession of the property.
The higher the arrears, the more likely it is that a landlord will feel compelled to take formal action to recover the money owed. This, in turn, increases the number of CCJs issued and puts further strain on an already stretched court system.
Sherlock urges tenants to remain proactive and communicate openly with their landlords if they’re experiencing financial difficulty. Early dialogue can often prevent issues from escalating and reduce the need for formal legal intervention.
He also calls for greater awareness among tenants regarding their responsibilities under the new legislation. While the Bill provides additional protections, it does not excuse rent non-payment or shield tenants from financial accountability.
In the end, the goal of the Renters Rights Bill is to create a fairer and more balanced rental sector. However, both tenants and landlords must fully understand how the new rules operate to avoid misunderstandings and unnecessary conflict.
As the rental landscape shifts, Sherlock’s message is clear: tenants must stay informed, plan carefully, and act responsibly. Failure to do so could result in lasting financial damage that will affect them for years to come.
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